The drop in Boston condo sales is being attributed in part to mortgage rates, which have been on the rise since the Federal Reserve first hiked interest rates earlier in the year. Boston condo sales may stabilize as mortgage rates flatten below June’s 6 percent peak.
Boston real estate thoughts
Asking a real estate broker if it’s a good time to buy a home is like asking an alcoholic if it’s a good time to drink a beer.
Boston real estate thoughts
U.S. household net worth surged to an all-time high in the second quarter, powered by a buoyant stock market and a record $1.2 trillion jump in real estate valuations.
A Federal Reserve report on Thursday showed that household net worth rose by $5.8 trillion, or 4.3 percent to $141.7 trillion in the period, according to Bloomberg. In June alone, home prices rose 18.6 percent, the biggest increase in three decades.
Meantime, more people are investing in stocks: Equities as a percentage of household assets rose to 29.5 percent in the quarter from 25.6 percent two years earlier as those valuations increased by $3.5 trillion. At the same time, net private savings rose by $2.9 trillion in the quarter, adding to $4.8 trillion in the prior period.
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(The BLM sign at the Lexington church I attend was stolen recently.) Other parishioners have spoken favorably about the placement of BLM signs because they view them as calling our attention to the basic human rights issues of racial prejudice and unjust discrimination. Is systemic racism currently part of the fabric of our country? Has the death of George Floyd brought about a new awareness of racism? Are discussions about racism and signs like BLM political in nature or something else? What should be our response to all of this as a community?
Original Boston real estate thoughts:
Low mortgage interest rates will support Boston real estate housing in 2020 but economic uncertainty and affordability issues will mute sales growth.
With interest rates expected to remain near three-year lows, buyers have more purchasing power than in years past, but they may be reluctant to get off the sidelines because of economic and political uncertainties. Additionally, an affordability crunch will cut into demand in some regions of downtown Boston, where affordability is significantly below national levels. These factors together could subdue sales growth next year.
The average for 30-year, fixed mortgage interest rates will dip to 3.7 percent in 2020, down from 3.9 percent in 2019 and 4.5 percent in 2018 and will remain low by historical standards..
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